London

Imperial Brands to sell and leaseback Bristol offices

Imperial Brands has appointed JLL to find a buyer for the freehold of its two offices at 121 and 123 Winterstoke Road, Bristol, which total 94,000 sq ft and 50,000 sq ft respectively.

As part of any sale Imperial will take out a long-term lease on the properties, ensuring Bristol remains the Company's global headquarters.

The transaction, known as a 'sale and leaseback', would enable Imperial to capitalise on the rising Bristol property market.

121 Winterstoke Road has been Imperial's head office since it first opened in 2013. 123 Winterstoke Road opened a year later and is home to Imperial's UK and Ireland market teams.

Imperial's chief financial officer Oliver Tant, said: "We continually look at how best we can optimise our assets and this transaction allows us to capitalise on the current strong demand for commercial property in Bristol and realise value for shareholders.

"We have a long history in Bristol and are proud to have our global headquarters here. The sale and leaseback arrangement underscores our long-term commitment to the city and will release funds to support the future growth of the business."

Nick Compton, head of corporate capital markets at JLL, said: "We have worked closely with Imperial to create two leaseback packages that are tailored to the Company's future needs and objectives.

"We anticipate the scarcity of such investments at this lot size to generate significant interest from both national and international investors. The sale process is expected to close during the third quarter of 2018."